LIFE INSURANCE PRACTICE EXAM Qs & Ans A+ Score Solution. 2025
UPDATED
The receipt given to a life insurance applicant when the application is completed and the initial
premium is received is called a(n)? - (answers)Conditional Receipt
Statements in the application for insurance that are believed to be true to the best of applicant's
knowledge are called? - (answers)Representations.
An annuity is considered fixed when it does all of the following Except? - (answers)Provides the
annuitant with an interest rate that is the lesser of the guaranteed or current rate.
The most common type of whole life insurance where premiums are payable over the whole life
of the insured to age 100 is called? - (answers)Continuous premium (straight) life.
The policy and a copy of the application, along with any riders and amendments, is called the? -
(answers)Entire contract.
Money borrowed from the policy's cash value is? - (answers)Not taxable.
Which of the following annuity products requires an agent to hold a securities license? -
(answers)Variable Annuities.
Which type of annuity settlement stops when the annuitant dies? - (answers)Life income annuity.
At what age can a participant receive distributions from a qualified plan without incurring a 10%
penalty? - (answers)59
Which settlement option guarantees an income for 2 or more recipients for as long as they live? -
(answers)Joint and survivor.
, Two business partners own life insurance on each other. If one partner dies, which of the
following contracts will allow the surviving partner to use the death benefit to purchase the
deceased's business interests? - (answers)Buy-sell agreement.
Which type of policy allows the insured to change the amount of the death benefit, the amount of
premium, or the type of coverage as their needs change? - (answers)Adjustable life.
If an annuitant dies during the accumulation period, what will the beneficiary receive? -
(answers)Either the cash value or the premiums paid, whichever is greater.
Any insurer who is Not approved to do business in this state is considered? -
(answers)Nonadmitted.
To prevent people from profiting from a loss, insurers must be certain? - (answers)Insurable
interest exists.
If a misstatement of age is discovered during the processing of a life insurance claim, what will
the insurer do? - (answers)Adjusts the death benefit based on the premiums that were paid.
Which of the following allows an insurance company to deny coverage if the insured's death
occurs in a war? - (answers)Policy exclusions.
Each of the following is typical characteristic of group life insurance Except? -
(answers)Evidence of insurability is usually required.
A life settlement option that pays out the death benefit incrementally, in a specified amount until
all of the proceeds are exhausted, is called? - (answers)Fixed-amount installments.
A life insurance death benefit paid in a lump sum to a beneficiary is? - (answers)Not subject to
any taxes.
UPDATED
The receipt given to a life insurance applicant when the application is completed and the initial
premium is received is called a(n)? - (answers)Conditional Receipt
Statements in the application for insurance that are believed to be true to the best of applicant's
knowledge are called? - (answers)Representations.
An annuity is considered fixed when it does all of the following Except? - (answers)Provides the
annuitant with an interest rate that is the lesser of the guaranteed or current rate.
The most common type of whole life insurance where premiums are payable over the whole life
of the insured to age 100 is called? - (answers)Continuous premium (straight) life.
The policy and a copy of the application, along with any riders and amendments, is called the? -
(answers)Entire contract.
Money borrowed from the policy's cash value is? - (answers)Not taxable.
Which of the following annuity products requires an agent to hold a securities license? -
(answers)Variable Annuities.
Which type of annuity settlement stops when the annuitant dies? - (answers)Life income annuity.
At what age can a participant receive distributions from a qualified plan without incurring a 10%
penalty? - (answers)59
Which settlement option guarantees an income for 2 or more recipients for as long as they live? -
(answers)Joint and survivor.
, Two business partners own life insurance on each other. If one partner dies, which of the
following contracts will allow the surviving partner to use the death benefit to purchase the
deceased's business interests? - (answers)Buy-sell agreement.
Which type of policy allows the insured to change the amount of the death benefit, the amount of
premium, or the type of coverage as their needs change? - (answers)Adjustable life.
If an annuitant dies during the accumulation period, what will the beneficiary receive? -
(answers)Either the cash value or the premiums paid, whichever is greater.
Any insurer who is Not approved to do business in this state is considered? -
(answers)Nonadmitted.
To prevent people from profiting from a loss, insurers must be certain? - (answers)Insurable
interest exists.
If a misstatement of age is discovered during the processing of a life insurance claim, what will
the insurer do? - (answers)Adjusts the death benefit based on the premiums that were paid.
Which of the following allows an insurance company to deny coverage if the insured's death
occurs in a war? - (answers)Policy exclusions.
Each of the following is typical characteristic of group life insurance Except? -
(answers)Evidence of insurability is usually required.
A life settlement option that pays out the death benefit incrementally, in a specified amount until
all of the proceeds are exhausted, is called? - (answers)Fixed-amount installments.
A life insurance death benefit paid in a lump sum to a beneficiary is? - (answers)Not subject to
any taxes.
